Weekly picks: OFSS, ONGC, BHEL among top bets by Motilal Oswal

Indian stock market: Key benchmark indices - Sensex and Nifty - extended their gains for the third consecutive session on Tuesday, July 16, reaching new all-time highs. The Sensex reached a new record high of 80,898.3, while the Nifty 50 achieved a new peak of 24,661.25 during the session. The 30-share index closed marginally higher at 80,716.55, up by 52 points or 0.06%, while the Nifty 50 concluded at 24,613, gaining 26 points or 0.11%. This also marked a new closing high for both indices.

“Nifty continued its momentum of making fresh highs and traded in positive territory throughout the day. The index closed with gains of 26 points at 24613 levels. Sector-wise it was a mixed bag with buying seen in reality, FMCG, and Auto. Markets rallied for the third consecutive day amid buying by FIIs and a rally in the global markets. With the nearing of a major event – Union Budget, we expect anxiety to increase in the market. Along with this Q1FY25 earnings results of prominent companies will drive the stock-specific action. On Wednesday, Indian Markets will remain closed on account of Moharram. Globally, Investors will watch for Retail Sales Data from the US to be released late today,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has recommended three stocks to buy this week with decent upmove - OFSS, ONGC, BHEL.

Stocks to buy

OFSS: Buy at ₹10556 | Target price: ₹11500 | Stop Loss: ₹10200

OFSS is strong uptrend and trading at life time high territory with strong buying across IT stocks. Technically the stock gave range breakout on monthly scale and forming higher highs – higher lows on weekly scale from past few weeks. On daily scale the stock gave fresh consolidation breakout after ten sessions and gave highest daily close. Momentum RSI oscillator gave bullish crossover which suggests momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 10200 levels on closing basis for a new high target towards 11500 zones.

ONGC: Buy at ₹307 | Target price: ₹335 | Stop Loss: ₹295

ONGC gave Pole & Flag breakout on weekly scale after twenty weeks and formed a strong bullish candle. On daily scale as well it gave consolidation breakout above250 zones and formed a strong bullish candle and gave highest daily close. It is taking support near its 50DEMA and momentum RSI oscillator gave bullish crossover which suggests momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 295 levels on closing basis for a new high target towards 335 zones.

BHEL: Buy at ₹325 | Target price: ₹350 | Stop Loss: ₹312

BHEL is consolidating at higher band in between 295 to 320 zones from past nine weeks and formed a strong bullish candle on weekly scale. It is on the verge of channel breakout above 315 zones and small follow up could start the next leg of rally. Stock is trading above its short term moving averages and good buying interest is visible across PSU stocks which will support the ongoing up move. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 312 levels on closing basis for a new life time high target towards 350 zones.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.